Tunisia: Third Review under the Extended Fund Facility, and Request for Waiver of Applicability and Modification of Performance Criteria

IMF Staff Country Reports, July 10, 2018

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The government has strengthened policy and reform implementation in recent months.
All Quantitative Performance Criteria (QPCs) for end-March were met.
Three out of nine Structural Benchmarks (SBs) for the Third Review were met.
One additional SB was implemented with delay.
Growth picked up to 2.5 percent in the first quarter.
Inflation has accelerated and weighs on the purchasing power notably of the less well-off.
International reserves remain below prudent levels.
Confidence has improved, albeit it continues to be affected by divisions in the coalition government, risks of security and migration spillovers from Libya, and higher international oil prices.

Growth: 2.5 percent in the first quarter.
Inflation: accelerated (exact rate not specified in the source text).
External position: international reserves remain below prudent levels.
Confidence: improved, but vulnerable to political divisions, security and migration spillovers from Libya, and higher international oil prices.

Quantitative Performance Criteria (QPCs):
- All QPCs for end-March were met.
Structural Benchmarks (SBs):
- Met: three out of nine SBs for the Third Review.
- Implemented with delay: one additional SB.

Political: divisions in the coalition government affecting confidence.
External/security: risks of security and migration spillovers from Libya.
External/commodity: higher international oil prices.
Social: accelerated inflation reducing purchasing power, notably of the less well-off.
External buffers: international reserves remain below prudent levels.